Article excerpt

THE abrupt firing of the president of Mexico's ruling
Institutional Revolutionary Party (PRI) and a sudden Cabinet
shuffle are pegged to the upcoming presidential elections in 1994,
analysts say. The changes show that President Carlos Salinas de
Gortari still pulls the strings in Mexican politics, even though he
cannot run for reelection.

On March 29, PRI president Genaro Borrego Estrada was "let go"
in the midst of the 16th PRI party congress. His dismissal is
largely attributed to the scandal that erupted over a banquet in
February attended by Mr. Salinas and 30 wealthy Mexican
businessmen, who each pledged an average $25 million to finance the
PRI campaign. Amid criticism at home and abroad, the PRI quickly
backtracked, announcing limits on campaign financing.

The Salinas administration has pegged the PRI's economic and
political future largely on the passage of the North American Free
Trade Agreement (NAFTA). The Mexican stock market falls or rises on
every whisper of criticism or praise coming out of the US Congress,
which will soon consider legislation to beef up labor and
environmental aspects of NAFTA.

In addition to firing Mr. Borrego, Salinas ousted Andres Caso
Lombardo, the Secretary of communications and transport. The move
was prompted mostly to insert another PRI tapado, or candidate,
into the running for the Mexican presidency. But the business
community approves the move because Mr. Caso has made quite a few
enemies in the privatization of Mexico's infrastructure projects.
The high-priced toll roads, for example, have forced many smaller
trucking companies to use the freeways, further damaging the roads.

It will be up to Emilio Gamboa Patron, the director of Mexico's
social security institute, to straighten out these infrastructure
problems. Mr. Gamboa was chief of staff under Miguel de la Madrid
Hurtado, Salinas' predecessor. "Gamboa is close to the president
and has a good political touch," notes a Mexican government
official.

IN a break with the past, PRI officials are indicating they want
to put off the naming of their presidential candidate until January
or February of 1994. Normally, the candidate is announced in
October or November.

The purpose of Gamboa's sudden appointment, analysts say, is to
keep people guessing about PRI presidential candidates. …